Friday, February 26, 2010

UTV given at 337.....

I have recomeded this stock ealier here.I saw a report on Utv today in ET in Midcap Mania column.I have seen in past some 2-3 more stock that I covered here suhc as Mcnally Bharat etc in same space but I today decided to past that article here.....

Broadcasting, movies to drive UTV numbers

Stock Has Appreciated 130% In Past 12 Months

UTV Software Communications is one of the few players in the entertainment industry pushing to corporatise the movie-making business. However, for years, the company had nothing much to show in terms of superior financial performance. Now, it seems, UTV’s strategy to chuck formula films, in favour of films high on content, is finally paying off.
In the December ‘09 quarter this fiscal, the company’s net sales grew by more than 150% to Rs 159 crore on a year-on-year basis, while its net profit during the period jumped by five times to Rs 40 crore. The company’s performance was driven by the success of newage films such as Kaminey and Wake-up Sid. Earlier in the year, the company had tasted success with DevD. The company produces films under two banners. For first-time and not-soknown directors, the company produces movies under the banner of UTV SpotBoy. While for established directors, it uses its flagship brand — UTV Motion Pictures. Interestingly, UTV is now majority-owned by Walt Disney with around 60% stake, which it has acquired for $400 million around two years ago.
While movie-making remains UTV’s core business, the company has also diversified into broadcasting in the past few years and its bouquet of television channels now include Bloomberg UTV, UTV World Movies, Bindaas, UTV Action and UTV Movies. Thanks to the diversification, movies now account for 48% of its revenues, with the balance coming from television software, broadcasting and gaming. During the April-December ’09 period, broadcasting for a third of its consolidated revenues, while 14% and 16% coming from TV content and its gaming venture, respectively. This diversification protects the company from excessive dependence on revenues from movie-making, which is highly susceptible to the success or failure of a flick.

In the past 12-months, the stock has been an outperformer and has appreciated by around 130% against 70% appreciation in the Sensex during the period. In the coming quarter, the company has good movies lined up which will drive its revenues and profitability. Also, its broadcasting business has picked up well and the company now claims a 17% market share of the total general entertainment segment. These two businesses would continue to drive its performance in future.


  1. Hi Rajeev,

    Any thoughts on Budget. It seems Minimum Alternative Tax have increased from 15% to 18%. Will it have significant effect on market as I think it will eat 3% company's profit.

    Thanks in advance;

  2. Dear rajeev,

    Yesterdays bulk deals shows that rakesh jhunjhunwala bought shares in srei infra yesterday.

  3. Mitz,
    That again shows that maybe I am no CA or MBA or IIM or have any economic degree but I am thinking in right line.
    I am able to visulize the growth and hence the earning and future of the Co.
    That also says that my thinking is at par with RJ who has taken a good chunck of shares of 6,50,000 at 65 and that is almost the same price I have been recomending it...
    What more readers want from me!
    I take a pride that I also thinks and see things like RJ who ultimately also think and looks like WB but in Indian context...

  4. Mitz,
    This is not the first time that hass happen that after I have put a recomendation RJ got interested.
    In past also that has happened....It is nothing new to me....

  5. sir is there any new pick if any please mention also thanks

  6. sir when u recommended srei infra?? and if any new recommendarion u made please mail me and any view on kingfisher airlines

  7. and sir at what rate u recommended srei and any other calls please mention

  8. rocky,
    write Srei Infra in "search This Blog" on front page and u will see how many times I have recomended Srei Infra in past 1 year.........

  9. thanks for reply sir i want to know ur opinion on my portfolio can i have your email id sir. and sir any recommendation of stocks at cmp. as alot of stocks moved at high so if any please enligtened and can i go for reliance media works

  10. rocky,
    I do not give portfolio advice....regarding stock at cmp....even reader named raj is asking that....I am surprised to see such questions....Srei Infra cmp RJ is buying...what else one want...go ahead and buy Srei Infra...seems no one is thinking...

  11. Dhiman,
    3% increase in MAT will take away that much profit but Ind will make it up....


  13. rocky,
    I use to recomend many stocks.Pick which u like....that is ur priority which one u wants to pick...

  14. Dear Rajeev,

    Ofcourse u r on the same league as RJ when it comes to stock picking.

    I consider u more important than him as i get to know ur brilliant picks and buy them. I have bought srei after the big fall from 90 and would add more in the near future.

    BTW Rajeev do u see any particular stock or sector that would benefit from the budget ??

  15. Hi Rajeev ji,
    Any comment on Bata India?
    Or any better company in this segment ? may be a potential multibagger in long run. Can you pls suggest your pick ?

  16. Mitz,
    Infrastructure and Railway are going to be the two main sector coming up as growth driver of our economy.
    For that Banking sector will also play an important role as lenders.I have already written about IDBI and IFCI as two main stocks in Financial sector....

  17. Om,
    Do not track Bata and do not track the sector as well....

  18. Dear Mr Rajeev

    The Budget has thrown very good opportunites for Infra / Agriculture
    Reneweable Engery / Banking

    The following stock avialble at reasonable prices in the above sectors as per my selection
    Agriculture - AGRO AGRI
    Renewable Energy - PAE,INDOWIND
    INFRA - Srei Infra / MAN INDUSTIES
    Banking - IFCI

    Rajeev this picks are basicalyy tacken from your Blog from time to time , i just want to have your valuable opinion on the above stock
    selection , whether iam on correct track.

  19. sorry small corrcetion it should be
    as follows

    Agriculture - ARIES AGRO

  20. nirash,
    what u have written is correct...